Infographic: Top tips to set your rates
CHECK THE COMPETITION
Search for similar rentals in your area on major rentals websites. Take a look at what these owners are setting as nightly, weekly and monthly rates. Check which dates these competitors have as high and low season; and search for their calendars to see how many days they book and how far out they book.
CONTROL YOUR EXPENSES
Estimate your expenses to be able to calculate what you will need to charge as well as the amount of days you will need to be booked in order to make a profit. Include your taxes, mortgage, the possible cost of ordinary repairs and renovations, emergency repairs, utilities and insurance. Your expenses may also include marketing and administration costs, permits or licenses, cleaning services, etc.
ADD YOUR EXTRA FEES
Some owners pass along a few of expenses such as taxes, cleaning, and sometimes even utilities directly to renters. For example, you may want to include a fee for air conditioning or pool heating because these will add to the cost of your utilities.
When setting your rates, you could set the weekly rate as the nightly rate and multiply by 5 or 6. This encourages travellers to book a full week because they will receive a slight discount. It is also expected to charge slightly more for weekend nights.